HomeMy WebLinkAboutRes. 029 - Loan - Alfalfa Fire DistritDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of February 26, 2014
DATE: February 14,2014
FROM: Wayne Lowry. Finance X6559
TITLE OF AGENDA ITEM:
Consent Agenda -Approval of Resolution No. 2014-029, Authorizing Signature of Document No.
2014-101, a Promissory Note for a Loan to the Alfalfa Fire District.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
The Alfalfa Fire District formation was approved by voters in November 2013. The voters also
authorized the District to levy property taxes for the 2015 fiscal year to support ongoing operations.
The District has requested a loan from Deschutes County in the amount of $1 0,000 to fund their
organizational costs in anticipation of revenue from property taxes to be received in November 2014.
The loan will be repaid by November 30,2014. The terms ofthe loan are outlined in the attached
resolution and promissory note.
FISCAL IMPLICATIONS:
A loan from the general fund will be recorded to be repaid in the 2015 fiscal year.
RECOMMENDATION & ACTION REOUESTED:
Approve the resolution authorizing the Finance Director to transact the loan to the Fire District.
ATTENDANCE: Wayne Lowry
DISTRIBUTION OF DOCUMENTS:
Finance will Districtbute Documents.
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LEGAL COUNSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Authorizing the Loan in the *
Amount of$10,000 to Alfalfa Fire District * RESOLUTION NO. 2014-029
Pending Collection of District's (Year) Real *
Property Taxes *
WHEREAS, Alfalfa Fire District has the authority to levy property taxes during FY 2015; and
WHEREAS, collection of such taxes will not be substantially realized until on or about
November 30,2014, and
WHEREAS, Alfalfa Fire District is anticipating the need for financial resources prior to the
collection of such taxes; and
WHEREAS, Alfalfa Fire District and Deschutes County anticipated the need for a short term
loan from County to District to meet District's financial obligations prior to collection of District's FY
2015 real property taxes and, therefore, will include the anticipated loan in each their respective
adopted FY 2015 budgets; now therefore,
BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF DESCHUTES COUNTY,
OREGON, as follows:
Section 1. That the Deschutes County Finance Director is hereby authorized to make a loan
to Alfalfa Fire District in the amount ofTEN THOUSAND and NO/IOO DOLLARS ($10,000.00) from
the Deschutes County General Fund upon execution by parties authorized to do so on behalf of Alfalfa
Fire District of a Promissory Note in the form of Exhibit "A" attached hereto and incorporated herein
by reference.
Section 2. Said loan is to be repaid to the Deschutes County General Fund in accordance
with the terms of the Promissory Note attached hereto as Exhibit "A".
Section 3. Interest shall accrue on the loan principal at the County's estimated monthly net
earnings rate, compounded monthly.
Section 4: The total principal amount due and all accrued interest shall be paid on or before
November 30,2014 ..
PAGE 1 OF 2 -RESOLUTION NO. 2014-029
DATED this _ day of ____----' BOARD OF COUNTY COMMISSIONERS
2014. OF DESCHUTES COUNTY, OREGON
TAMMY BANEY, Chair
ATTEST:
ANTHONY DEBONE, Vice Chair
Recording Secretary ALAN UNGER, Commissioner
PAGE 2 OF 2-RESOLUTIONNO. 2014-029
EXHIBIT "A"
Deschutes County
Promissory Note
Date: _______,2014
Promisor: Alfalfa Fire District
Attn: Rowan Hollitz, Treasurer
PO Box 7942
Bend, OR 97708
Promisee: Deschutes County
Attn: Wayne Lowry
1300 NW Wall Street, Ste 200
Bend, OR 97701
FOR VALUE RECEIVED, Promisor promises to pay Promisee, at Promisee's order, the
principal sum ofTEN THOUSAND and no/100 DOLLARS ($10,000.00). Principal, and
accrued interest thereon, shall be payable in one-lump sum installment which shall be due by
November 30,2014. There is no penalty for prepayment.
1. Interest.
Interest shall accrue on the loan principal at the County's estimated monthly net earnings rate,
compounded monthly.
2. Disputes.
With respect to any dispute relating to this agreement, or in the event that a suit, action,
arbitration, or other proceeding of any nature whatsoever, including, without limitation, any
proceeding under the U.S. Bankruptcy Code and involving issues peculiar to Federal
bankruptcy law, or any action seeking a declaration of rights, is instituted to interpret or enforce
this agreement or any provision of this agreement, the prevailing party shall be entitled to
recover from the losing party its reasonable attorney's fees and all other fees, costs, and expenses
actually incurred and reasonably necessary in connection therewith, as determined by the judge
or arbitrator at trial or other proceeding or on any appeal or review, in addition to all other
amounts provided by law.
3. Waivers
Presentment, notice of dishonor, and protest are hereby waived by all promisors, makers,
sureties, guarantors, and endorsers hereof. This note shall be the joint and several obligation of
DC 2 0 14 --1 0 1
all promisors, makers, sureties, guarantors and endorsers, and shall be binding upon them and
their successors and assign.
4. Notices
Any notice to Promisor provided for in this Note shall be given by mailing such notice by
certified mail addressed to Promisor at the property address stated, or to such other address as
Promisor may designate by notice to Promisee. Any notice to Promisee shall be given by
mailing such notice by certified mail, return receipt requested, to Promisee at the address stated
in the first paragraph of this Note, or at such other address as may have been designated by
notice to Promisor.
PROMISOR: ALF ALF A RURAL FIRE DISTRICT
Name Title Date
Name Title Date